IDEAS home Printed from https://ideas.repec.org/a/bla/asiapr/v3y2008i2p180-204.html
   My bibliography  Save this article

Rapid Economic Growth: Contributing Factors and Challenges Ahead

Author

Listed:
  • Isher Judge AHLUWALIA

Abstract

The sustained improvement in the underlying conditions for growth for more than two decades has resulted in lifting the Indian economy from the bottom of the growth heap to one of the fastest growing economies in the world. This paper presents the factors that have contributed to the growth acceleration in India over the past 25 years and the challenges faced by the growth process in the years ahead. The inadequate and poor quality of infrastructure, particularly electricity, the emerging scarcity of skilled labor, and a lagging agricultural sector pose serious medium‐term challenges to the sustainability of high growth, while management of the macroeconomic environment poses more immediate challenges in view of the proliferation of unsustainable and sometimes invisible subsidies, sharp increases in the world prices of food and fuel, and pressure on the exchange rate executed by strong capital inflows.

Suggested Citation

  • Isher Judge AHLUWALIA, 2008. "Rapid Economic Growth: Contributing Factors and Challenges Ahead," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 180-204, December.
  • Handle: RePEc:bla:asiapr:v:3:y:2008:i:2:p:180-204
    DOI: 10.1111/j.1748-3131.2008.00103.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1748-3131.2008.00103.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1748-3131.2008.00103.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    2. Bosworth, Barry & Collins, Susan M. & Virmani, Arvind, 2007. "Sources of Growth in the Indian Economy," India Policy Forum, National Council of Applied Economic Research, vol. 3(1), pages 1-69.
    3. M. Govinda Rao & R. Kavita Rao, 2005. "Trends and Issues in Tax Policy and Reform in India," India Policy Forum, Global Economy and Development Program, The Brookings Institution, vol. 2(1), pages 55-122.
    4. Planning Commission, 2006. "An Approach to the 11th Five Year Plan: Towards Faster and More Inclusive Growth," Working Papers id:569, eSocialSciences.
    5. Montek S. Ahluwalia, 2002. "Economic Reforms in India Since 1991: Has Gradualism Worked?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 67-88, Summer.
    6. Rao, M. Govinda & Rao, R. Kavita, 2006. "Trends and Issues in Tax Policy and Reform in India," India Policy Forum, National Council of Applied Economic Research, vol. 2(1), pages 55-122.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Takatoshi ITO & Akira KOJIMA & Colin McKENZIE & Shujiro URATA, 2009. "Editors’ Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 4(1), pages 1-18, June.
    2. Ghosh, Taniya & Parab, Prashant Mehul, 2021. "Assessing India’s productivity trends and endogenous growth: New evidence from technology, human capital and foreign direct investment," Economic Modelling, Elsevier, vol. 97(C), pages 182-195.
    3. Pallab Paul & Kausiki Mukhopadhyay, 2010. "Growth via Intellectual Property Rights Versus Gendered Inequity in Emerging Economies: An Ethical Dilemma for International Business," Journal of Business Ethics, Springer, vol. 91(3), pages 359-378, February.
    4. Banerjee, Rajabrata & Roy, Saikat Sinha, 2014. "Human capital, technological progress and trade: What explains India's long run growth?," Journal of Asian Economics, Elsevier, vol. 30(C), pages 15-31.
    5. Makoto KOJIMA, 2008. "Comment on “Rapid Economic Growth: Contributing Factors and Challenges Ahead”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 205-206, December.
    6. Maitri Ghosh & Saikat Sinha Roy, 2018. "Foreign Direct Investment, Firm Heterogeneity, and Exports: An Analysis of Indian Manufacturing," Asian Development Review, MIT Press, vol. 35(1), pages 27-51, March.
    7. Jong‐Wha LEE, 2008. "Comment on “Rapid Economic Growth: Contributing Factors and Challenges Ahead”1," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 207-208, December.
    8. Nagesh Kumar, 2013. "Trade, Capital Flows and the Balance of Payments," Development Papers 1303, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:kqi:journl:2018-2-1-2 is not listed on IDEAS
    2. Kaushik Basu & Annemie Maertens, 2007. "The pattern and causes of economic growth in India," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(2), pages 143-167, Summer.
    3. Laura Alfaro & Anusha Chari, 2009. "India Transformed? Insights from the Firm Level 1988-2005," Harvard Business School Working Papers 10-030, Harvard Business School.
    4. Singh, Nirvikar & Srinivasan, T.N., 2006. "Federalism and economic development in India:An assessment," MPRA Paper 1273, University Library of Munich, Germany.
    5. Albert Berry, 2018. "India’s 1970s-1990s Step-wise Growth Acceleration: Causes and Impacts," Journal of Development Innovations, KarmaQuest International, vol. 2(1), pages 14-38, May.
    6. Castelló-Climent, Amparo & Mukhopadhyay, Abhiroop, 2013. "Mass education or a minority well educated elite in the process of growth: The case of India," Journal of Development Economics, Elsevier, vol. 105(C), pages 303-320.
    7. Richard Herd & Sean Dougherty, 2007. "Growth Prospects in China and India Compared," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 65-89, June.
    8. Singh, Nirvikar, 2006. "Services-led industrialization in India: Assessment and lessons," MPRA Paper 1276, University Library of Munich, Germany.
    9. Siddiqur Osmani, 2009. "Explaining Growth in South Asia," Chapters, in: Gary McMahon & Hadi Salehi Esfahani & Lyn Squire (ed.), Diversity in Economic Growth, chapter 3, Edward Elgar Publishing.
    10. Nirvikar Singh, 2007. "The dynamics of reform of India’s federal system," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(01), pages 22-31, April.
    11. Ramesh Chandra & Rajiv Kumar, 2010. "South Asian Integration: Prospects and Lessons from East Asia," Chapters, in: Masahiro Kawai & Jong-Wha Lee & Peter A. Petri & Giovanni Capanelli (ed.), Asian Regionalism in the World Economy, chapter 12, Edward Elgar Publishing.
    12. Rishabh Kumar, 2020. "Top Indian wealth shares and inheritances 1966–1985," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 14(3), pages 551-580, September.
    13. Aditya Bhattacharjea, 2006. "Labour Market Regulation and Industrial Performance in India--A Critical Review of the Empirical Evidence," Working papers 141, Centre for Development Economics, Delhi School of Economics.
    14. Sen Gupta, Abhijit & Hasan, Rana & Lamba, Sneha, 2014. "Growth, Structural Change, and Poverty Reduction: Evidence from India," MPRA Paper 55247, University Library of Munich, Germany.
    15. Singh, Nirvikar, 2007. "Fiscal Federalism and Decentralization in India," MPRA Paper 1447, University Library of Munich, Germany.
    16. Bishnupriya Gupta, 2019. "Falling behind and catching up: India's transition from a colonial economy," Economic History Review, Economic History Society, vol. 72(3), pages 803-827, August.
    17. Sedithippa J. Balaji & Munisamy Gopinath, 2023. "Spatial growth and convergence in Indian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 54(6), pages 761-777, November.
    18. Ross Stewart & Carlos Moslares, 2012. "Income inequality and economic growth: the case of Indian states 1980-2010," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, August.
    19. Erumban, Abdul Azeez & Das, Deb Kusum & Aggarwal, Suresh & Das, Pilu Chandra, 2019. "Structural change and economic growth in India," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 186-202.
    20. Nanditha Mathew, 2017. "Drivers of firm growth: micro-evidence from Indian manufacturing," Journal of Evolutionary Economics, Springer, vol. 27(3), pages 585-611, July.
    21. Avigyan Sengupta & Saikat Sinha Roy, 2018. "India’s trade policy: Which way now?," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 45(2), pages 129-145, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiapr:v:3:y:2008:i:2:p:180-204. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jcerrjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.